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<br /> B -I- OIL AND GAS LEASE �:�.
<br /> Form 88.-(Producers) (NEBRASKA) ',
<br /> 21262—The Augustine Co., County 6uppliea, Grand Island, Nebr. I.
<br /> FROM THE STATE OF NEBRASKA ',
<br /> ss. i
<br />� �Jal ter p,Kellog�,widovrer Hall County, ,
<br /> I hereby certify that this instrument was entered on Numerical Index, mid filec� ,
<br /> f or record this 6 day of AU 8 t 19 �}2 .
<br />' at 1 ' 0 o'clock p.M. ' � I
<br /> T •
<br /> 0 3 �
<br /> Register of Dee s �,
<br /> Joe �1r2�Y�t Deputy. �,,
<br /> Fees, $ �:15 !I
<br /> 1 I
<br /> i
<br /> �,'ommence
<br /> I� AGREEMENT, 1�'lade and entered into this 1.£3 t', day o{ kpril . 19 �1. ._by and betu+een
<br />' Wa7_ter p .�ellog�; (Piidower)
<br /> Party of the first part,hereinafter called lessor(whether one or more�ancl
<br /> e1 U P. W r i gh t Part y o f the second part, hereina f ter called lessee,
<br /> WITNESSF.TH, That the said lessor, f or ancl in consic�eration o) - one — DOLLARS,
<br /> cash in Tiand paid, receipt of which. is liereby acknowledged, and of the covenants and agreements hereinafter contained on the part of lessee to be paid, kept, and per-
<br /> formed, lias granted, demised, leased and let and by these presents does grant, demise, lease and let unto said lessee,for tlie sole and only purpose of mining and operating
<br /> for oil and gas, and Iaying pipe Iines, and building tanks, power stations and structures thereon to procluce,save and take care of said products,aIl that certain tract of land
<br /> situatecl in tTie County of Hal-� State of N�BRASKA described � follows, to-wit:
<br /> �Jest HaI� oP SoutYi East �uarter, Sectiar_ £�;
<br /> of Section Townsliip Z� � Range 1-� � and contain{ng $'O acres, more or less.
<br /> It is agreed that this lease shall remain in full force for a term of t@r1 years from this date, and as long thereafter as oil or gas, or
<br /> either of them, is produced from said land by the Iessee.
<br /> In consicleration of the premises tTie said lessee covenants and agrees:
<br /> tst. To deliver to the credit of lessor, free of cost, in the pipe line to whicTi lie may connect his wells, the equal one-eighth (1/s) part of alI oil produced and saued
<br /> from the Ieased premises.
<br /> 2nd. To pay Iessor for gas from each well where gas only is found the equal one-eighth (%s) of the gross proceeds at the prevailing market rate, for aII gas used of f
<br /> the premises, said payments to be made mon�hl.y
<br /> and lessor to have gas f ree o f cost f rom any such well f or alI stoves ancl alI inside lights in the principal dwelling Tiouse on said Iand during the same time by making Tiis
<br /> own connections with the well at his own rislz and expense.
<br /> grd. To pay lessor f or gas produced f rom any oil well and used o f f the premises or in the manuf acture o f gasoline or any otlier procluct a royalty o f one-eighth
<br /> ('/a) of t�e market value, at the mouth of the well, payable monthly at the prevailing marizet price.
<br /> If no well be commenced on said land on or before the 1.8t'+ day of Niar. eh , tg �.�.1} , this Iease shall
<br /> ferminate as to botFt parties, unless the lessee on or before that date sl�all pay or tencter to the lessor,or to t�e lessors crec�it in The �1',8t@ B&21�t oP Cairo
<br /> Banlz at Calro,Nebr or its successors, wh�ch shall continue
<br /> as the depository regardless of changes in the owne:ship of said land, the sum of ,�"��pp DOLLARS,
<br /> which shall operate as a rental and cover the privilege o f def erring tlie commencement o f a well f or T.i� months f rom said date. In like manner and
<br /> upon lilze payments or tenders the commencement of a well may be f urther de f erred f or Iilze periods o f the same number o f montl�s successively. All such payments or
<br /> tenders of rentals may be made by check or draft of lessee or any assignee thereof, mailed or delivered on or before the rental paying date, either direct to lessor or assigns
<br /> or to said depository bank. And it is understood and agreed that the consideration f irst recitecl herein, the down payment, covers not only tjte privileges granted to the
<br /> clate when said first rental is payable as aforesaid, but also the lessee's option of extenc�ing that period as aforesaid, and any and aII otl�er rights eonferred.
<br /> Shoulc� the first well drilled on th,e above described land be a dry hole, th.en, and in tliat event, if a seconcl well is not commenced on said land within twelve months
<br /> from the expiration of the last rental period for which rental has been paid, this lease shall terminate as to both parties, unless the lessee on or before the expiration of
<br /> said twelve months sTiall resume the payment of rentals in the same amount and in th,e same manner as liereinbefore provided. And it is agreed t�at upon the resump-
<br /> tion of the payment of rentals, as above provicled, that the last preceding paragrapTt hereof, governing the payment of rentals and tT�e eFfect thereof, shall continue in
<br /> force just as though there had been no interruption in the rental paymenls.
<br /> If saicl lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein, then the royalties and rentals herein provided
<br /> shall be p<aid the lessor only in the proportion which his interest bears to the whole and undivided f ee.
<br /> Lessee s�all have tTie right to use, free of cost, gas, oil, ancl water proclucecl on said land for its operation tliereon, except water from wells of lessor.
<br /> When requested by Iessor, lessee shall bury his pipe lines below plow depth.
<br /> No well shall be drilled nearer than 20o feet to the house or barn now on said premises, without tlie written consent of the Iessor.
<br /> Lessee shall pay for clamages causec� by its operation to growing erops on saic� lancl.
<br /> Lessee shall have the right at any time to remove all machinery ancl fixtures placed on said premises, including the right to draw and remove casing.
<br /> If the Iessee shall commence to drill a well wit�in the term of this lease or any extension thereof, the lessee shall have the right to drill such well to completion with
<br /> reasonable dilic�ence and dispatch, and if oiI or gas, or either of tl�em, be found in paying quantities, this lease s�all continue and be in force with tlie like effect as if
<br /> such well had been completed within the term of years herein first mentioned.
<br /> If the estate of either party hereto is assigned, and the privilege of assigning in whole or in part is expressly alloiued, the covenants hereof shall extend to their
<br /> heirs, executors, administrators, successors or assigns, but no change in the ownership of the land or assignment of rentals or royalties shall be binding on the lessee until
<br /> ,after the lessee has been furnisliecl with a written transfer or assignment or a true copy thereof; ancl it is hereby agreed in the event this lease s�all be assigned as to a
<br /> part or as to parts of the above described lands and the assignee or assignees of such part or parts shall fail or malze default in the payment of tFte proportionate part of
<br /> the rents due from him or them on an acreage basis, such default sliall not operate to defeat or affect this lease in so far as it covers a part or parts of said Iands upon
<br /> which the saicl Iessee or any assignee thereof shall make due payments of said rentals. If the Ieased premises are now or hereafter owned in severalty or in separate tracts,
<br /> the premises, nenertheless, may be developed and operated as an entirety, and tl�e royal'ties shall be paid to each separate owner in the proportion that the acreage owned
<br /> by him bears to the entire leasec� area. There shall be no obligation on the part of the lessee to of fset wells on separate tracts into which the land covered by this lease
<br /> may hereaf ter be dividecl by sale, devise, or otherwise, or to f urnish separate measuring or receiving tanks f or the oil produced f rom sucl� separate tracts.
<br /> ILessor hereby warrants and agrees to defend the title to the lands herein described, and agrees that the Iessee s1�all have the right at any time to redeem for lessor by
<br /> payment, any mortgages, taxes or other liens on the above described lands, in the event of de{ault of payment by Iessor, and be subrogated to the rights of the holder
<br /> thereof. .
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<br /> --------------------------WaI ter---P..Kello��--�----------------------(SEAL)
<br /> Signecl. sealecl ancl cleliverecl in presenee of .....----�-------------------------------------------------------------------------------------------------�----------------..._..._(SEAL)
<br /> -----------------------�----�----------------------------------...------�---._...---........------------------�--------------....---(SEAL)
<br /> ---------------------------------------G.C_,Hav�r
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